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10) Discuss three benefits of liquidity planning (also known as contingency funding plans). (9 points) 11) The book describes liquidity management as a knife-edge management

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10) Discuss three benefits of liquidity planning (also known as contingency funding plans). (9 points) 11) The book describes liquidity management as a "knife-edge" management problem, meaning institutions want neither too much liquidity nor too little. Discuss one reason on each side why does an institution not want too little liquidity, and why does an institution not want too much liquidity? ( 6 points)

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